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Judgment Debtor Withdrew Cash and Spent Without Any Proof for Spending
My question involves collection proceedings in the State of: Florida
I am judgment creditor. The judgment debtor withdrew cash from his bank account and made it almost empty, and claiming that he spent thousands of dollars of cash each month on food, liquor, travel, gambling, etc. He did not produce any receipts for that spending. I suspect he is saving that cash in his home or with friends. What can I do?
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Re: Judgment Debtor Withdrew Cash and Spent Without Any Proof for Spending
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daniel6
My question involves collection proceedings in the State of: Florida
I am judgment creditor. The judgment debtor withdrew cash from his bank account and made it almost empty, and claiming that he spent thousands of dollars of cash each month on food, liquor, travel, gambling, etc. He did not produce any receipts for that spending. I suspect he is saving that cash in his home or with friends. What can I do?
Nothing really. He is allowed to spend his own money. He also doesn't have to prove it with receipts.
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Re: Judgment Debtor Withdrew Cash and Spent Without Any Proof for Spending
You need to be taking steps to enforce your judgment, which could include obtaining a writ of garnishment and serving it on the bank.
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Re: Judgment Debtor Withdrew Cash and Spent Without Any Proof for Spending
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daniel6
He did not produce any receipts for that spending.
Did not produce receipts to whom? A person against whom you have a judgment is not obligated to account to you for his everyday spending (unless you got a heck of an odd court order).
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daniel6
What can I do?
I'm sure you can do lots of things.
Unfortunately, Florida is a very deadbeat friendly state. However, it appears that Florida does allow wage garnishment to enforce civil money judgments. Wage garnishment and bank levies are the most common ways of enforcing civil money judgments. If your debtor has piles of cash lying around in his home, you're beyond unlikely to find out about that.
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Re: Judgment Debtor Withdrew Cash and Spent Without Any Proof for Spending
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daniel6
My question involves collection proceedings in the State of: Florida
I am judgment creditor. The judgment debtor withdrew cash from his bank account and made it almost empty, and claiming that he spent thousands of dollars of cash each month on food, liquor, travel, gambling, etc. He did not produce any receipts for that spending. I suspect he is saving that cash in his home or with friends. What can I do?
You could try having him summoned to court for a debtor's examination under oath and question him about his "fraudulent transfer" (google it) from his bank account.
How much is your judgment for?
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Re: Judgment Debtor Withdrew Cash and Spent Without Any Proof for Spending
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adjusterjack
You could try having him summoned to court for a debtor's examination under oath and question him about his "fraudulent transfer" (google it) from his bank account.
Except that spending his money on goods and services isn't a fraudulent conveyance/transfer because he's getting back things of value for the money. Those things may be consumed and thus not available to the creditor, but that simply means the creditor has to be more on the ball to grab the money before the judgment debtor runs out and spends it.
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Re: Judgment Debtor Withdrew Cash and Spent Without Any Proof for Spending
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Taxing Matters
Except that spending his money on goods and services isn't a fraudulent conveyance/transfer because he's getting back things of value for the money. Those things may be consumed and thus not available to the creditor, but that simply means the creditor has to be more on the ball to grab the money before the judgment debtor runs out and spends it.
Agree. Nor would taking cash out of a bank account and "saving that cash in his home or with friends" -- which is what the OP suspects -- be a fraudulent transfer, as Jack suggested (perhaps it is Jack who ought to do the googling :rolleyes:). The debtor still owns, possesses and/or controls the asset -- simply in a different form (actual cash rather than a deposit account). Even if the OP's suspicions are true and the OP conducts a debtor exam, the debtor could very easily lie about what he did with the money, and it would be virtually impossible for the OP to prove otherwise.
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Re: Judgment Debtor Withdrew Cash and Spent Without Any Proof for Spending
Thanks to all, and I am upset that I can’t do anything legally with that cash he withdrew from bank. Can I or law enforcement people check his home or his children’s home with a court order once he lie under oath about that cash spending? He and his wife jointly owned the home as homestead, and his wife is not part of this case. The judgment is for around 100K and he withdrew 60K cash in approximately 3 month time.
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Re: Judgment Debtor Withdrew Cash and Spent Without Any Proof for Spending
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daniel6
The judgment is for around 100K and he withdrew 60K cash in approximately 3 month time.
Why didn't you levy his bank account(s) as soon as you got the judgment?
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daniel6
I am upset that I can’t do anything legally with that cash he withdrew from bank.
That's not quite what we're telling you. Your problem is twofold. First, you don't actually know what the guy did with the cash. You told us that he said he spent it on stuff. If that's true, then the cash is no longer his, so it shouldn't come as any surprise that you can't do anything with it (because it's no longer his). Second, while you said you suspect he's hiding the cash at home or with friends, it doesn't sound like you have any actual evidence to support your suspicion. If you had evidence that he still has the cash (or that someone is holding it for him), then there are things you could do. However, if he testifies that he spent it and you have no evidence to contradict that, then you're SOL.
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daniel6
Can I or law enforcement people check his home or his children’s home with a court order. . . ?
Not unless you have evidence. We don't raid people's homes based on other people's baseless suspicions.
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daniel6
The judgment is for around 100K and he withdrew 60K cash in approximately 3 month time.
It wouldn't be the first time someone got hit with a judgment and went on a spending spree in order to give the creditor double middle fingers. It's certainly not common in the 5-6 figure range, but neither is it unheard of.
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Re: Judgment Debtor Withdrew Cash and Spent Without Any Proof for Spending
Thanks a lot to you all. If his adult children or friends depositing cash in their accounts later on, will it help proving that the debtor lied under oath? However, I know that his children or friends will support him only. Also, spending 60K cash in 3 months will not raise any red flag to the court that he lied under oath? Generally is there any fixed amount which will certainly raise a red flag about his (fictitious) spending, without any receipts for that spending? He probably withdrew and spent more money from other accounts which are now closed. I could not levy his bank accounts ASAP as I had some personal issues after the judgment.
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Re: Judgment Debtor Withdrew Cash and Spent Without Any Proof for Spending
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daniel6
Thanks to all, and I am upset that I can’t do anything legally with that cash he withdrew from bank. Can I or law enforcement people check his home or his children’s home with a court order once he lie under oath about that cash spending? He and his wife jointly owned the home as homestead, and his wife is not part of this case. The judgment is for around 100K and he withdrew 60K cash in approximately 3 month time.
To begin there is nothing available through the civil court system authorizing you or your agents or any law enforcement agency to randomly "check" the debtor's residence, and/or office/storage facility or that of his children, his relatives, business associates, friends or acquaintances. Even considering that you allowed the guy to get into your britches for a hundred grand you ought to be smart enough to know that!
Secondly, what evidence to you possess substantiating the assertion that "he withdrew 60K cash in approximately 3 month time" [sic]; when, how and from what source did you obtain any such evidence; and how does this mentioned "3 months time" span correlate with the date of your judgment?
If you are interested in learning what post judgment supplementary remedies are available and will stop with the whimpering long enough, study these:
http://www.leg.state.fl.us/Statutes/...s/0056.30.html
http://www.leg.state.fl.us/Statutes/...s/0056.29.html
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Re: Judgment Debtor Withdrew Cash and Spent Without Any Proof for Spending
Thanks a lot again. I am trying to get back on my feet due to major sickness. He called me today for possible settlement and in writing offered 8K for settlement. He voluntarily gave me copies of his notarized bank records and an affidavit stating that he has no other bank accounts now. In that affidavit, he stated that he has no receipts for any of his cash spending. He gave me permission to use those documents in this legal matter if this matter is not settled. Therefore I knew that he withdrew 60K cash in approximately 3 months time.
I personally know that he is head of household. Therefore his salary cannot be garnished from employer, and it cannot be garnished from bank for 6 months. I personally know the details of his employer and his salary. There may be max. 2-3K per month left over in his bank account, after he spends the salary for his family living purposes. It seems it will not be a big deal for him to withdraw that remaining 2-3K per month and store the cash somewhere and claim that he spent it. He has several trusted friends and family members. He told me that if I proceed further legally he will withdraw his settlement offer once and for all.
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Re: Judgment Debtor Withdrew Cash and Spent Without Any Proof for Spending
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daniel6
If his adult children or friends depositing cash in their accounts later on, will it help proving that the debtor lied under oath?
In theory, yes, but you have virtually no way of discovering what's happening with bank accounts owned by folks other than the judgment debtor.
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daniel6
Also, spending 60K cash in 3 months will not raise any red flag to the court that he lied under oath?
Not if he has an explanation of what he spent the money on.
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Re: Judgment Debtor Withdrew Cash and Spent Without Any Proof for Spending
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daniel6
I personally know that he is head of household. Therefore his salary cannot be garnished from employer, and it cannot be garnished from bank for 6 months. I personally know the details of his employer and his salary.
You are certainly making a lot of assumptions, not the least of which is that he is exempt from wage garnishment. Well, he's not exempt until you file for it and he files for the exemption and the judge agrees that he's exempt.
Have you read the Florida statute?
http://www.leg.state.fl.us/statutes/.../0077.041.html
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Re: Judgment Debtor Withdrew Cash and Spent Without Any Proof for Spending
Thanks a lot again. He come up with reasons such as paying for a limousine or taxi and travel all over or spend on expensive liquor, gambling, etc using cash. I am unhappy that this kind of spending around 20K per month will do not raise a red flag to the court. Is there any way to prove that he is lying about this spending, once he falsely testifies under oath?
Is there any way to make the court to enter an order prohibiting him from using cash and order him to use traceable transactions such as checks, wire transfer, credit card, etc only, or put a limit on his monthly spending?
We deposed him prior to the judgment which made him the debtor and he is very clever person. I can file for his wage garnishment but I know soon I will be back to where I am now.
Any advice is very helpful to me.
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Re: Judgment Debtor Withdrew Cash and Spent Without Any Proof for Spending
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daniel6
Thanks a lot again. He come up with reasons such as paying for a limousine or taxi and travel all over or spend on expensive liquor, gambling, etc using cash. I am unhappy that this kind of spending around 20K per month will do not raise a red flag to the court. Is there any way to prove that he is lying about this spending, once he falsely testifies under oath?
Is there any way to make the court to enter an order prohibiting him from using cash and order him to use traceable transactions such as checks, wire transfer, credit card, etc only, or put a limit on his monthly spending?
We deposed him prior to the judgment which made him the debtor and he is very clever person. I can file for his wage garnishment but I know soon I will be back to where I am now.
Any advice is very helpful to me.
No, the judge cannot do that. Please understand that you are NEVER going to get any kind of records of his spending, or be able to control his spending. Its simply not going to happen.
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Re: Judgment Debtor Withdrew Cash and Spent Without Any Proof for Spending
I understand that your preferred method of resolution would be for some form of law enforcement, be it a court or some other agency, to force him to spend his money only in the ways that you approve.
That is not going to happen. It doesn't matter how many variations on a theme you come up with.
There IS a way to ensure that he pays you. That is to file, and receive, a wage garnishment.
Of course he's going to discourage you from doing so. Do you expect him to be happy about the idea? But just because he claims that he wouldn't be subject to a garnishment doesn't make him right.
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Re: Judgment Debtor Withdrew Cash and Spent Without Any Proof for Spending
Thanks a lot again. It is evident that he is a free bird to use the cash in the way he likes as long as he is lying that he is spending it, and nothing to prove contrary. Since you are all advising me to file for wage garnishment, I will do. I am 100% confident that he will file CLAIM OF EXEMPTION AND REQUEST FOR HEARING, selecting choice 1-a in that form.
Thank you again all.
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Re: Judgment Debtor Withdrew Cash and Spent Without Any Proof for Spending
Just because he files a claim of exemption does not mean an exemption will be granted.
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Re: Judgment Debtor Withdrew Cash and Spent Without Any Proof for Spending
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daniel6
He told me that if I proceed further legally he will withdraw his settlement offer once and for all.
Until you put his feet to the fire and he begs you to reconsider.
How did you manage to successfully sue somebody and get a judgment for $100,000? I imagine you had a lawyer. Where is that lawyer now and why aren't you using him to go after your enemy, even if he takes a percentage?
You'll never see a nickel of that $100,000 if all you are going to do is worry about all the ways you can't collect. Someone who can spend $60,000 in 3 months isn't invulnerable to what your lawyer can do to him that you apparently cannot.
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Re: Judgment Debtor Withdrew Cash and Spent Without Any Proof for Spending
Thanks a lot again. His wife has no job, take care of their children and they have no formal source of income except his job and his wife will testify as she did prior to judgment on his behalf therefore it is almost certain he will qualify for head of household exception. My former attorney said he is not specialized in debt collection and warned me that miracles won’t happen to get judgment money back from the debtor and I am also running out of my own money.